The economy's fundamentals, as well as corporate earnings growth, look better now than at the beginning of the year. Dan Skelly, head of the equity model portfolio team at Morgan Stanley (MS) , said the improvement has him bullish on stocks in the second half especially Allergan (AGN) , Alphabet (GOOGL) and L Brands (LB) . 'Investor appetite for risk is pretty low right now, but if we get past Brexit this week with Britain deciding to stay in the Eurozone, which is our base case, we could see markets take off from there,' said Skelly. Shares of Allergan are down 25 percent so far in 2016 primarily due to the scrapping of its tax inversion deal with Pfizer (PFE) in April. Since that merger was called off, Allergan has enjoyed a fairly healthy positive string of news, although the stock has not shot up accordingly. Skelly said he expects sentiment to change and that investors will soon realize that Allergan is a great business on its own. 'The Botox business grew 17 percent last quarter and we actually saw management speak very positively about the rest of its pipeline at a recent conference,' said Skelly, adding that the closing of its generics deal with Teva (TEVA) will also give the company $30 billion in cash to help it deleverage and buyback stock.
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